Cost Acctg QUIZ 7 - Cost Accounting Quiz...

Cost Accounting Quiz Quiz #7 (CHAPTER 15 QUIZ) 1. The use of a dual-rate cost-allocation method recognizes a. the improvements in technology allowing for use of multiple cost pools. b. the need to use both budgeted and actual cost rates when allocating. c. the need to use both budgeted and actual usage of quantities when allocating. d. the behavior aspect of costs. 2. Managers are affected by risks they have to take and would prefer to use a. actual rates for cost allocation because the rates are calculated from real amounts. b. actual rates for cost allocation because actual rates are easier to justify to users. c. budgeted rates for cost allocation because the rates are known in advance. d. budgeted rates for cost allocation because any variances are transferred to users. The following data apply to questions 3–5. Billy Stone, Inc. budgets the following amounts for its Buildings & Grounds and Computer Services Departments in servicing each other and the two manufacturing divisions of Signs and Mailers:

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